Historically, gold and dollar share an inverse relationship with each other and the recent spike in dollar has weighed gold down.
The Indian Rupee has touched a record low of 53.75 against Dollar on Wednesday, which is driving gold down again.
MCX gold futures for February delivery opened at Rs 28,810 per 10 grams and touched a low of Rs 28,631 per 10 grams during the initial session. The metal was seen trading in the range of Rs 28,722 – Rs 28,727 per 10 grams at 12:20 pm IST.
Overseas spot gold also slid further, was seen around US $1,637 - $1,638 a troy ounce.
Gold may dip further if dollar continue rising against the major currencies.